INDEX

1. WORLD's LARGEST ECONOMIES 2

2. FINANCIAL MARKETS 10

3. WORLD's GREATEST INVESTORS 15

4. THE GLOBAL 2000 20

5. INDIAN COMPANIES GONE GLOBAL 28

6. FINANCIAL SERVICES/ INSTITUTIONS OF INDIA 33

7. EMINENT BUSINESS HOUSES OF INDIA 39

8. DEMONETIZATION AND GST 46

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 Chapter 1
WORLD'S LARGEST ECONOMIES

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A country's economic growth is determined through various sector and the GDP.
Every country has their own sector which contributes to the economy.
The top 10 economies around the world keep changing, but the major players
remain the same. The United States has been the world's biggest economy since
1871.
We will be discussing the top 10 economies and what contributes to make them
be in top 10.

Top 10 Largest Economies of the World

Share
SN Flag Country 2021 Rank
(%)
United
1 22,675.27 1 24.2
States

2 China 16,642.32 2 17.7

3 Japan 5,378.14 3 5.73

4 Germany 4,319.29 4 4.6

United
5 3,124.65 5 3.33
Kingdom

6 India 3,049.70 6 3.25

7 France 2,938.27 7 3.13

8 Italy 2,106.29 8 2.24

9 Canada 1,883.49 9 2.01

South
10 1,806.71 10 1.92
Korea

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 Increase Your Knowledge Further !
Q.1 Everyone knows about the largest economies of the world. Find out 5
economies which are worst performing.

Q. 2 Now when you have identied these economies, nd out their GDP for
the previous year.

Q. 3 Compare the sector wise contribution in the GDP for :

a. United States b. China
c. Japan d. India

Make Notes:

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 Chapter 2
FINANCIAL MARKETS

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Financial Market is a mechanism that allows people to buy and sell (trade) nancial
securities (such as stocks and bonds), commodities (such as precious metals or
agricultural goods) and other fungible (equivalent no matter who produces it) items
of value at low transaction costs.

The Financial Markets can be found in nearly every nation in the world. They are
where businesses are able to raise cash to grow, reduce their risk and investors gain
money. The Market being public provides an open platform and a transparent way
to set prices on everything being traded.

We will now discuss various types of Financial Markets:

1.Foreign Exchange Market

Foreign Exchange Market is the largest and the most liquid market in the world
where currencies are traded. It is considered to be the largest market in the world
in terms of the total cash value traded.

It was creation of Gold Standard monetary

system in 1875 which is considered to be the
most important event in the history of forex
market. During the late 19th century, the
major economic countries had pegged an
amount of currency to an ounce of gold. It was
during this time, the difference between the
price of an ounce of gold between two
currencies became the exchange rate for those
two countries. Thus becoming the 1st ofcial means of currency exchange in history.

The huge trading volume, Geographical dispersion, continuous operation (24 hours
a day except weekends) makes the market a unique medium for trading.
It's the nancial centres around the world which acts as anchors of trading between
the buyers and sellers. The top 5 global nancial centres are :
• London
• New York
• Singapore
• Hong Kong
• Tokyo

Foreign Exchange trading has increased to an average of USD 5.3 trillion a day
i.e. USD 220 billion per hour. The foreign exchange market consists of institutional
investors, corporations, governments, banks as well as currency speculators.
Dollar makes up to 85% of Forex trading volume while Euro and Japanese Yen
takes 40% and 20% respectively.

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2. Stock Market
Stock Exchange is an exchange where stock brokers
and traders can buy and sell stocks, bonds and other
securities.

Stock Market, also known as Equity Market, is a

collection of markets and exchanges where issuing
and trading of equities, bonds and other sorts of
securities takes place, either through formal
exchanges or over the counter markets. Stock market is divided in 2 main sections:

• Primary Market –
New shares are issued through initial public offerings. These shares are often
purchased from investment banks. For Example, Facebook held it’s IPO on May 18,
2012, the IPO was the biggest in technology and internet history with peak market
capitalization of over USD 104 billion.

• Secondary Market -
All the subsequent trading post primary market's IPO goes on secondary market,
which includes both organisation and individual investors as participants. The fund
generated by the stock trading in secondary market is not received by the
company. Currently, the stock of Facebook is being traded at USD 186.36 as on
20th August 2019.

There are total of 60 stock exchanges in the world with total market capitalization
of more than USD 70 trillion. Around 87% of global market capitalization is
accounted by 16 exchanges which hold close to USD 1.5 trillion. Amsterdam Stock
Exchange is oldest stock exchange in the world.
The major stock exchanges in world are New York Stock Exchange, NASDAQ,
London Stock Exchange Group, Japan Exchange Group- Tokyo and Shanghai
Stock Exchange.

3. Commodity Market
A physical or a virtual marketplace for buying, selling and trading raw or primary
products is called a commodity market. There are about 50 major commodity
markets worldwide.

Commodities can be divided into 2 types :

• Hard Commodity: They are typically natural resources that must be mined or
extracted such as gold, rubber and oil.
• Soft Commodity : They are agricultural products or livestock such as wheat, `
cocoa and sugar.

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Commodity Market also trades foreign currencies, emissions credits, bandwidth
and certain nancial instruments also these days.

An exchange where various commodities are traded is known as commodity

exchange. The largest commodity exchange's are CME Group (USA), Tokyo
Commodity Exchange (Japan), Euro next (France, Belgium, Netherlands, Portugal,
UK) and Dalian Commodity Exchange (China).

The top traded commodities are mineral fuels,

oils, distillation products, electrical and electronic
equipment, machinery, vehicles and plastics. The
tradable commodities fall into 4 categories:
• Metals (Gold, Silver and Copper)
• Energy (Crude Oil, Natural Gas and
Gasoline)
• Livestock and Meat (Live Cattle, Feeder Cattle
and Pork Bellies)
• Agricultural (Wheat, Rice and Sugar)

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 Increase Your Knowledge Further !
Now you understood the concept of Financial Markets.
Q.1 Find out the top 3 exchanges of the world.

Q. 2 As India is the growing economy, list here the National Stock Exchange
of India.

Q. 3 List 5 Commodity Markets across world.

Make Notes:

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 Chapter 3
WORLD's GREATEST INVESTORS

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Everyone wants to multiply money. One can do it by investing it.
Let’s know about World's top 5 investors of all time.

John (Jack) Bogle

He is an American investor, business magnate, and philanthropist.
He is the founder and retired chief executive of The Vanguard
Group. It was under his leadership that the company grew to be
the second largest mutual fund company in the world. He focused
much of his attention on low-cost and low-turnover funds that are
passively managed. With an eye toward helping individual
investors to grow their assets and recommended the following
considerations:

• A focus on simplicity in investment strategy (not rebalancing asset allocation too

frequently, for instance)
• The reduction of costs and expenses associated with investments
• Consideration of the long-term investment horizon
• A reliance on rational analysis and an avoidance of emotions in the investment
decision-making process
• The universality of index investing as an appropriate strategy for individual
investors

His own portfolio has maintained a strict focus on U.S. markets. This has drawn some
criticism and confusion from contemporary investors, but Bogle has long asserted
that his approach is not U.S.-centric, but rather that he invests in what he knows best,
and U.S. companies best t that description.

Warren Buffett
With net worth of USD 82 billion , Warren Buffett is known as
“Oracle of Omaha”. He is one of the most successful investors of
all time. He is the CEO of Berkshire Hathaway which owns more
than 60 companies including Geico, Duracell and Diary Queen.
He bought his rst stock at the age of 11 and led his rst tax at
age of 13. It was by the age of 29 that he had opened a total of
seven partnerships and had a 9.5% stake in more than a million
dollars of partnership assets.
During the Great Recession, Warren invested and lent money to companies that
were facing nancial disaster. Seven years later, the effects of these transactions
are surfacing and they're enormous:
1. A loan to Mars Inc. resulted in a USD 680 million prot
2. Wells Fargo & Co. (WFC), of which Berkshire Hathaway bought almost 120
million shares during the Great Recession, is up 6.75 times from its 2009 low.

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3. American Express Co. (AXP) is up about ve times since Warren's investment in
2008
4. Bank of America Corp. (BAC) pays USD 300 million a year and Berkshire
Hathaway has the option to buy additional shares at around USD 7 each – less than
half of what it trades at today

5. Goldman Sachs Group Inc. (GS) paid out USD 500 million in dividends a year
and a USD 500 million redemption bonus when they repurchased the shares.
Most recently, Warren has partnered up with 3G Capital to merge J.H. Heinz
Company and Kraft Foods to create the Kraft Heinz Food Company (KHC). The new
company is the third largest food and beverage company in North America and
fth largest in the world, and boosts annual revenues of USD 28 billion.

John Templeton
Sir John Marks Templeton was an American born British investor and Fund Manager.
He had been named as arguably the greatest global stock
picker of the century.
In 1937, while the Great Depression was still hitting the nation
hard, Templeton co-founded an investment rm that later
became Templeton, Dobbrow & Vance. Under Templeton's
leadership, the rm was highly successful, accumulating some
$300 million in assets and expanding to include eight mutual
funds.

In 1939, he purchased $100 worth of every stock which was

trading below $1 per share on the New York and American stock exchanges, which
totalled to about 104 different companies, a whopping 34 of which were
bankrupt, and Templeton's initial investment was $10,400. After four years, he
managed to sell those shares for nearly four times the money he had initially
invested.

Over the next 25 years, Templeton had a hand in creating a number of highly
successful international investment funds. In 1992, at age 80, Templeton sold off his
funds to the Franklin Group.

Benjamin Graham
A British-born American investor, economist, and professor, Benjamin
Graham is widely known as the “Father of Value Investing”. Graham
studied at Columbia University, graduating in 1914, and began
working at Newburger, Henderson & Loeb as a messenger
immediately after graduation. Graham rose through the ranks
exceptionally quickly and was named partner at the company by
1920.
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Working together with partner Jerome Newman, Graham founded an investment
partnership in 1926 and began to lecture at Columbia University on matters of
nance. He continued to lecture on these topics until his retirement in 1956.
Although the Graham-Newman Corporation suffered greatly during the stock
market crash of 1929, the partnership survived and eventually managed to
recoup its losses. From that time until its termination in 1956, the Graham-Newman
Corporation thrived, sporting an average annual return of 17%.

Peter Lynch
Peter Lynch is an American investor, mutual fund manager, and
philanthropist. As the manager of the Magellan Fund at Fidelity
Investments between 1977 and 1990, he averaged a 29.2%
annual return, consistently more than doubling the S&P 500 market
index and making it the best performing mutual fund in the world.
During his tenure, assets under management increased from
USD18 million to $14 billion.

Lynch's earliest career move was as an investment analyst at Fidelity Investments.

He eventually rose through the ranks to become the rm's Director of Research
(1974-77). In 1977, Lynch became manager of the low-prole Magellan Fund,
where his career really took off. He retired in 1990 from his work with Magellan.

Lynch continued to work part-time as Vice Chairman of Fidelity Management &

Research Company, though most of his efforts in the time since his retirement have
focused on philanthropy.

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 Increase Your Knowledge Further !
Q.1 Generally investing is done by the CEO's or the owner of rms.
Write about 5 powerful CEO's across the world and what they have
achieved ?

Q. 2 Search and write one quote given by each of these great investors.

Q. 3 After reading about the types of investment they have done.

What is your approach towards the same.

Make Notes:

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 Chapter 4
The Global 2000
World’s Largest Public Companies

The GLOBAL 2000

World Largest Public Companies

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We will be discussing the World’s 10 Largest Public Companies, according to
Forbes Global 2000 List, released in May 2021.

1. ICBC- Industrial and Commercial Bank of China

MARKET CAP $249.5 B
INDUSTRY Banking
FOUNDED 2011
COUNTRY/TERRITORY China
CHIEF EXECUTIVE OFFICER Shu Gu
EMPLOYEES 434,798
SALES $190.5B
HEADQUARTERS Beijing
Industrial & Commercial Bank of China Ltd. engages in the provision of commercial
banking and nancial services. It operates through the following business
segments: Corporate Banking, Personal Banking, Treasury Operations, and
Others. The Corporate Banking segment provides corporate loans, trade
nancing, deposit-taking activities, corporate wealth management services,
custody activities, and various types of corporate intermediary services to
corporations, government agencies and nancial institutions. The PersonalBanking
segment offers personal loans, deposit-taking activities, card business, personal
wealth management services, and various types of personal intermediary services
to individual customers. The Treasury Operations segment issues money market
transactions, investment securities, foreign exchange transactions and the holding
of derivative positions, for its own account or on behalf of customers. The Others
segment includes assets, liabilities, income, and expenses that cannot be allocated
to a segment. The company was founded on January 1, 1984 and is
headquartered in Beijing, China.

2. JPMorgan Chase
MARKET CAP $464.8 B
INDUSTRY Diversied Financials
FOUNDED 1968
COUNTRY/TERRITORY United States
CHIEF EXECUTIVE OFFICER Jamie Dimon
EMPLOYEES 255,351
SALES $136.2B
HEADQUARTERS New York, New York

JPMorgan Chase & Co. is a nancial holding company. It provides nancial and
investment banking services. The rm offers a range of investment banking
products and services in all capital markets, including advising on corporate
strategy and structure, capital raising in equity and debt markets, risk
management, market making in cash securities and derivative instruments, and
brokerage and research. It operates through the following segments: Consumer

p16
and Community Banking, Corporate and Investment Bank, Commercial Banking
and Asset and Wealth Management. The Consumer and Community Banking
segment serves consumers and businesses through personal service at bank
branches and through automated teller machine, online, mobile, and telephone
banking. The Corporate and Investment Bank segment offers a suite of investment
banking, market-making, prime brokerage, and treasury and securities products
and services to a global client base of corporations, investors, nancial institutions,
government and municipal entities. The Commercial Banking segment delivers
services to U.S. and its multinational clients, including corporations, municipalities,
nancial institutions, and non prot entities. It also provides nancing to real estate
investors and owners as well as nancial solutions, including lending, treasury
services, investment banking, and asset management. The Asset and Wealth
Management segment provides asset and wealth management services. The
company was founded in 1968 and is headquartered in New York, NY.

3. Berkshire Hathaway
MARKET CAP $624.4 B
INDUSTRY Diversied Financials
FOUNDED 1955
COUNTRY/TERRITORY United States
CHIEF EXECUTIVE OFFICER Warren Edward Buffett
EMPLOYEES 360,000
SALES $245.5B
HEADQUARTERS Omaha, Nebraska
Berkshire Hathaway, Inc. provides property and casualty insurance and
reinsurance, utilities and energy, freight rail transportation, nance,
manufacturing, retailing, and services. It operates through following segments:
GEICO, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary
Group, Burlington Northern Santa Fe, LLC (BNSF), Berkshire Hathaway Energy,
McLane Company, Manufacturing, and Service and Retailing. The GEICO
segments involves in underwriting private passenger automobile insurance mainly
by direct
response methods. The Berkshire Hathaway Reinsurance Group segment consists
of underwriting excess-of-loss and quota-share and facultative reinsurance
worldwide. The Berkshire Hathaway Primary Group segment comprises of
underwriting multiple lines of property and casualty insurance policies for
primarily commercial accounts. The BNSF segment operates railroad systems in
North America. The Berkshire Hathaway Energy segments deals with regulated
electric and gas utility, including power generation and distribution activities, and
real estate brokerage activities. The McLane Company segment offers wholesale
distribution of groceries and non-food items. The Manufacturing segment includes

p17
industrial and end-user products, building products, and apparel. The Service and
Retailing segment provides fractional aircraft ownership programs, aviation pilot
training, electronic components distribution, and various retailing businesses,
including automobile dealerships, and trailer and furniture leasing. The company
was founded by Oliver Chace in 1939 and is headquartered in Omaha, NE.

4. China Construction Bank

MARKET CAP $210.4B
INDUSTRY Banking
FOUNDED 1954
COUNTRY/TERRITORY China
CHIEF EXECUTIVE OFFICER Wang Zuji
EMPLOYEES 347,156
SALES $173.5B
HEADQUARTERS Beijing
China Construction Bank Corp. engages in the provision of a wide range of
nancial services to corporate and personal customers. It operates through the
following business segments: Corporate Banking, Personal Banking, Treasury, and
Others. The Corporate Banking segment provides a range of nancial products
and services to corporations, government agencies and nancial institutions, which
comprises of corporate loans, trade nancing, deposit taking and wealth
management services, agency services, nancial consulting
and advisory services, cash management services, remittance and settlement
services, custody services, and guarantee services. The Personal Banking segment
provides personal loans, deposit taking and wealth management services, card
business, remittance services, and agency services to individual customers. The
Treasury segment represents inter-bank money market transactions, repurchase
and resale transactions, investments in debt securities, and trade of derivatives
and foreign currency. The Others segment refers to equity investments and
revenues, results, assets and liabilities of overseas branches and subsidiaries. The
company was founded in October 1954 and is headquartered in Beijing, China.

5. Saudi Arabian Oil Company

MARKET CAP $1.9T
INDUSTRY Oil & Gas Operations
FOUNDED 1933
COUNTRY/TERRITORY Saudi Arabia
CHIEF EXECUTIVE OFFICER Amin bin Hasan Al-Nasser
EMPLOYEES 66,800
SALES $229.7B
HEADQUARTERS Dhahran
Saudi Arabian Oil Co. engages in the exploration, production, transportation, and
sale of crude oil and natural gas. It operates through the following segments:

p18
Upstream, Downstream, and Corporate. The Upstream segment includes crude oil,
natural gas and natural gas liquids exploration, eld development, and
production. The Downstream segment focuses on rening, logistics, power
generation, and the marketing of crude oil, petroleum and petrochemical
products, and related services to international and domestic customers.
The Corporate segment offers supporting services including human resources,
nance, and information technology. The company was founded on May 29, 1933
and is headquartered in Dhahran, Saudi Arabia.
,
6. Apple Inc.
MARKET CAP $2252.3 B
INDUSTRY Technology Hardware & Equipment
FOUNDED 1976
COUNTRY/TERRITORY United States
CHIEF EXECUTIVE OFFICER Tim Cook
EMPLOYEES 147,000
SALES $294B
HEADQUARTERS Cupertino, California
Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal
computers, tablets, wearables and accessories, and other variety of related
services. It operates through the following geographical segments: Americas,
Europe, Greater China, Japan, and Rest of Asia Pacic. The Americas segment
includes North and South America. The Europe segment consists of European
countries, as well as India, the Middle East, and Africa. The Greater China segment
comprises of China, Hong Kong, and Taiwan. The Rest of Asia
Pacic segment includes Australia and Asian countries. Its products and services
include iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, Apple
Care, iCloud, digital content stores, streaming, and licensing services. The company
was founded by Steven Paul Jobs, Ronald Gerald Wayne, and Stephen G.
Wozniak on April 1, 1976 and is headquartered in Cupertino, CA.

7. Bank of America (BAC)

MARKET CAP $336.3 B
INDUSTRY Banking
FOUNDED 1904
COUNTRY/TERRITORY United States
CHIEF EXECUTIVE OFFICER Brian T. Moynihan
EMPLOYEES 213,000
SALES $98.8B
HEADQUARTERS Charlotte, North Carolina
Bank of America Corp. is a bank and nancial holding company, which engages in
the provision of banking and nonbank nancial services. It operates through the
following segments: Consumer Banking, Global Wealth and Investment

p19
Management, Global Banking, Global Markets, and All Other. The Consumer
Banking segment offers credit, banking, and investment products and services to
consumers and small businesses. The Global Wealth and Investment Management
provides client experience through a network of nancial advisors
focused on to meet their needs through a full set of investment management,
brokerage, banking, and retirement products. The Global Banking segment deals
with lending-related products and services, integrated working capital
management and treasury solutions to clients, and underwriting and advisory
services. The Global Markets segment includes sales and trading services, as well
as research, to institutional clients across xed-income, credit, currency, commodity,
and equity businesses. The All Other segment consists of asset and liability
management activities, equity investments, non-core mortgage loans and servicing
activities, the net impact of periodic revisions to the mortgage servicing rights
(MSR) valuation model for both core and non-core MSRs, other liquidating
businesses, residual expense allocations and other. The company was founded by
Amadeo Peter Giannini in 1904 is headquartered in Charlotte, NC.

8. Ping An Insurance Group

MARKET CAP $211.2B
INDUSTRY Insurance
FOUNDED 1988
COUNTRY/TERRITORY China
CHIEF EXECUTIVE OFFICER Xin Ying Chen, Ming Zhe Ma
EMPLOYEES 362,035
SALES $169.1B
HEADQUARTERS Shenzhen
Ping An Insurance (Group) Co. of China Ltd. engages in the provision of nancial
products and services. It operates through the following segments: Insurance,
Banking, Trust, Securities, Other Asset Management, Technology, and Others. The
Insurance segment offers life, property and casualty, pension, and health insurance
services. The Banking segment undertakes loan and intermediary business, wealth
management, and credit card services. The Trust segment provides trust services
and undertakes investing activities. The
Securities segment undertakes brokerage, trading, investment banking and asset
management services. The Other Asset Management business segment provides
investment management services and nancial leasing business, reecting
performance of asset management and nancial leasing and the other asset
management subsidiaries. The Technology business segment provides nancial
and daily-life services through internet platforms such as nancial transaction
information service platform, health care service platform, reecting performance
summary of the technology business subsidiaries, associates and jointly controlled

p20
entities. The company was founded by Ming Zhe Ma on March 21, 1988 and is
headquartered in Shenzhen, China.

9. Agricultural Bank of China

MARKET CAP $140.1B
INDUSTRY Banking
FOUNDED 1951
COUNTRY/TERRITORY China
CHIEF EXECUTIVE OFFICER Huan Zhao
EMPLOYEES 459,000
SALES $153.9B
HEADQUARTERS Beijing

Agricultural Bank of China engages in the provision of international commercial

banking and nancial services. It operates through the following segments:
Corporate Banking, Personal Banking, Treasury Operations and Others &
Unallocated. The Corporate Banking segment provides nancial products and
services to corporations, government agencies and nancial institutions. The
Personal Banking segment provides nancial products and services to individual
customers. The Treasury Operations segment conducts money market or
repurchases transactions, debt instrument investments, and holding of derivative
positions. The Others & Unallocated segment deals with primarily equity
investments. The company was founded on July 10, 1951 and is headquartered in
Beijing, China.
10. Amazon (AMZN)
MARKET CAP $1711.8B
INDUSTRY Retailing
FOUNDED 1994
COUNTRY/TERRITORY United States
CHIEF EXECUTIVE OFFICER Jeffrey P. Bezos
EMPLOYEES 1,298,000
SALES $386.1B
HEADQUARTERS Seattle, Washington
Amazon.com, Inc. engages in the provision of online retail shopping services. It
operates through the following business segments: North America, International,
and Amazon Web Services (AWS). The North America segment includes retail
sales of consumer products and subscriptions through North America-focused
websites such as www.amazon.com and www.amazon.ca. The International
segment offers retail sales of consumer products and subscriptions through
internationally-focused websites. The Amazon Web Services segment involves
in the global sales of compute, storage, database, and AWS service offerings
for start-ups, enterprises, government agencies, and academic institutions. The
company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in
Seattle, WA.
p21
 Increase Your Knowledge Further !
Q.1 Find about the Forbes List of Largest Private Companies.

Q. 2 Which Indian companies are in the list of Forbes Global 2000 and
at what rank ?

Q. 3 Similar to Forbes Global 2000, there is a list of “The Banker Top

1000 list of World Banks”. Write about it .

Make Notes:

p22
 Chapter 5
INDIAN COMPANIES
GONE GLOBAL

p23
Companies started with both short as well as long term objective. There are
companies which started with a small idea and today have grown to reach
international heights. The list tells you about Indian companies which have
established and grown overseas.

1.ONGC (ONGC Videsh)

ONGC Videsh Limited is the international division of ONGC.
Established on 15th June 1989 , ONGC Videsh today has
spread across 17 countries with 38 projects producing about
23.4 % of oil and 18.9% of India's domestic oil and natural
gas production, making it the second largest petroleum
company of India , next to its parent company ONGC.
The primary business is to prospect for oil and gas including
exploration, development and production of oil and gas.
With presence across Vietnam, Russia, Sudan, South Sudan, Iran, Iraq, Libya,
Myanmar, Syria, Brazil, Colombia, Venezuela, Kazakhstan, Azerbaijan,
Mozambique, Bangladesh and New Zealand, ONGC completed 741 km product
pipeline project in Sudan in 2005. ONGC Videsh is the rst Indian Company to
produce equity oil and gas abroad.

2. TATA Motors
Established in 1945, TATA Motors, today is a USD 42 billion
organisation being a leading global automobile
manufacturer. TATA Motors expanded internationally through
exports in 1961. The group has presence in over 170
countries having close to 6600 touch points. The company has
grown consistently through acquisitions after launching
indigenously-built passenger car Tata Indica. It's notable acquisitions include
Daewoo Commercial Vehicles Company, Hispano Carrocera, and Jaguar-Land
Rover. Guenter Butschek is the CEO of TATA Motors operating under the leadership
of Natarajan Chandrasekaran , Chairman of TATA Sons. TATA Motors is also listed
on Bombay Stock Exchange.

3. Motherson Sumi Systems

Established in 1986, the company came into existence as
a joint venture between Samvardhana Motherson Group
and Japan's Sumitomo Wiring Systems. Today, the
company is considered to be the leading automotive
mirror and wiring harness manufacturer for passenger
cars. Motherson Sumi Systems today has ofces and
manufacturing units in 24 international and 11 Indian locations having a revenue

p24
of USD 5 billion. With close to 80,000 employees , the company has done 10
acquitions till now.

4. Hindalco Industries Ltd.

Established in 1958 , Hindalco Industries Ltd. is the industry
leader in aluminium and copper. It is the world's largest
aluminium rolling company and of the Asia’s biggest
producers of primary aluminium. Hindalco ranks among the
global aluminium majors as an integrated producer and a
footprint in 13 countries outside India.
Its copper smelter is today one of the world's largest custom
smelter at a single location. The acquisition of Novelis Inc, the world's largest
aluminium rolling company, in 2007, made Hindalco an international organisation
making it amongst the top 5 global aluminium majors.

5. Jubilant Life Sciences

Established in 1978, Jubilant Life Sciences is an integrated
pharmaceutical and life sciences company which also
provides services in contract manufacturing of sterile
injectables and drug discovery solutions. Jubilant Life Sciences
have global sales in over 100 countries and ground presence
in India, Europe, China and North America.

It owns world class manufacturing facilities in India and North America. It has
relationship with 19 of Top 20 pharmaceutical companies and 6 amongst top 10
agrochemical companies across the globe. The parent company of Jubilant Life
Sciences is Jubilant Bhartia Group which has 3 agship companies listed on Stock
exchange i.e. Jubilant Life Sciences Ltd, Jubilant FoodWorks Ltd and Jubilant
Industries Ltd.

6. Infosys
Started in 1981 by 7 engineers, Infosys Ltd. today has
grown by leaps and bounds to become one of the
biggest IT Company. Started with a capital of Rs.
10,000, Infosys is a global leader in technology and
consulting services enabling clients in more than 50
countries to create and execute strategies for their digital transformation.

Global leader in technology and consulting services. Today, Infosys has grown to
market capitalization of USD 36.3 billion. Infosys is growing its global presence in
India, United States, China, Australia, Japan , Middle East and Europe.

p25
7. Punj Lloyd
Established in 1988 , as Punj Lloyd Engineering Private
Limited, Punj Lloyd is an international EPC Contractor
providing services for energy, infrastructure and defence
sectors. It provides integrated design, engineering,
procurement, construction and project management services in the energy and
infrastructure sectors. Punj Llyod employs 6,500 people from 30 nationalities in its
50+ subsidiaries in 60 + countries with operations in Middle East, Asia Pacic,
South Asia, Africa and Europe.

8. Dr. Reddy Laboratories

Established in 1984 by Anji Reddy , Dr. Reddy
Laboratories is an Indian Multinational Pharmaceutical
Company which manufactures and markets a wide range
of pharmaceuticals in India and overseas. Today, it has manufacturing plants and
research centres around the globe including markets such as US, UK and Mexico. It
is considered to be the India's most trusted brand. It has operations in close to 80
countries. The move to Russia in 1992 made the company expand internationally.
With revenue of USD 2.6 billion, Dr. Reddy Laboratories is own for its quality.

9. Suzlon Energy
Established in 1995, Suzlon Energy is one of the leading
renewable energy solutions providers in the world. It has
presence in 19 countries across 6 continents with over
10000 employees of diverse nationalities. Suzlon
Energy today has presence across Brazil, China, Europe,
North America and Australia. Suzlon is synonymous with green energy , with its 15
manufacturing units set up in India and China supported by 8 R&D facilities in
Germany, India, Denmark and the Netherlands. They have installed around 15.50
GW of wind globally. Suzlon is listed on National Stock Exchange and Bombay
Stock Exchange , having a vision to be a technology leader in the renewable
energy sector and be in the top 3 renewable energy companies in the key markets
of the world.

10. HCL Technologies

Established in 1986, HCL Technologies is a subsidiary
of HCL Enterprise. It offers services including IT
consulting, enterprise transformation, remote
infrastructure management, engineering and R&D and
business process outsourcing. HCL Technologies has its
presence in 32 countries globally with ofces in United States, European countries
like France and Germany and Northern Ireland. HCL Technologies is headed by
Shiv Nadar, generating revenue of USD 7 billion. HCL operates across number of
sectors such as aerospace and defence, automotive, consumer electronics, energy
and utilities, nancial services, government, industrial manufacturing, life sciences
and healthcare etc.

p26
 Increase Your Knowledge Further !
Q.1 TATA Sons has no. of companies operating under its banner. TATA Motors
is one of the companies which has gone global. Find and gain knowledge
about other TATA companies which have gone global.

Q. 2 Find a start up from India which has gone global.

Q. 3 Write about the global telecommunications company which is global

and has presence in about 19 countries.

Make Notes:

p27
Chapter 6
FINANCIAL SERVICES &
INSTITUTIONS OF INDIA

p28
The nancial system of a country has a great impact on the economy as the nancial
services companies are responsible for the vigorous economic growth.

Financial services provided by nance companies include insurance, housing ,

nancing, mutual funds, stock broking and investment advisory.

The top nancial services companies are as follows :

1. SBI Capital Markets Limited

SBI Capital Markets Limited (SBICAP) is an investment bank
which was founded in 1986. It is India's largest domestic I
nvestment Bank which offers the complete range of investment b
anking and corporate advisory services. It is a wholly owned s
ubsidiary and the Investment Banking arm of SBI.

SBICAP has 5 subsidiaries SBICAP Securities Limited, SBICAP T

rustee Company Limited, SBICAP Ventures Limited, SBICAP(UK) L
imited and SBICAP (Singapore) Limited.

It has 5 regional ofces in India with headquarters at Mumbai, Maharashtra.

SBICAP is the sole member of M&A International Inc which offers the unparalleled
resources of over 600 professionals in 46 M&A advisory and investment banking
rms operating in 40 countries.

2. PNB Housing Finance Ltd.

PNB Housing is a housing nance company, registered with
National Housing Bank, which commenced operations in
1988. Promoted by Punjab National Bank, it is
headquartered in New Delhi. It provides housing loans to
individual and companies for construction, purchase, repair and up gradation of
houses.

It has Pan India presence in more than 60 location and 18 hubs which support
branch operations. PNB Housing got its equity shares listed on National Stock
Exchange and Bombay Stock Exchange.

PNB Housing offers Home Loans (Housing loans to individuals for construction,
purchase , repair and upgrade of houses), Non Home Loan (Loan against property,
commercial property loan, etc) and Deposits (Public Deposits of different
maturities and various interest payment options).

p29
3. ICICI Group
ICICI Group offers a wide range of banking products
and nancial services to corporate and retail
customers. Due to their customer approach and
focus, the group companies have been able to
maintain and enhance the leadership position in the respective sectors.
The Group's companies consist of ICICI Bank, ICICI Prudential Life Insurance
Company, ICICI Securities Limited, ICICI Lombard General Insurance Company,
ICICI Prudential AMC & Trust, ICICI Venture, ICICI Direct, ICICI Foundation, Disha
Financial Counselling.
ICICI Bank is considered to be one of the leading company of ICICI group. ICICI
Bank is India's largest private sector bank with a network of 4,850 branches and
13,722 ATM's across India.

4. Birla Sun Life Asset Management

Birla Sun Life Asset Management, the investment
managers of Birla Sun Life Mutual Fund, is a joint venture
between the Aditya Birla Group and the Sun Life
Financial Inc. of Canada. Incorporated in 1994, it spans
across 26 countries & headed by Mr. A Balasubramanian.
It strives to provide transparent, ethical and research-
based investments and wealth management services. Birla Sun Life Asset
Management has one of the largest team of research analysts in the industry.
The joint venture between Aditya Birla Group and Sun Life Financial Services Inc. of
Canada bring the experience of former in the Indian Market and latter's global
experience.
Birla Sun Life Mutual Fund manages assets of large investor base. They offer a
range of investment options, including diversied and sector specic schemes, fund
of fund schemes, hybrid and monthly income funds, a wide range of debt and
treasury products and offshore funds.

5. L & T Financial Services

L & T Financial Services, incorporated in 1994, is the
brand name of L&T Finance Holdings Ltd. It is a National
Stock Exchange and Bombay Stock Exchange listed
company, which is also registered with RBI as an NBFC and CIC. The retail business
of the company has grown both organically and inorganically to reach an asset
size of around Rs. 28,000 crore while serving more than 30 lakh customers.
L & T Finance offers various nancial products and services for trade, industry and
agriculture such as Home Loans, Personal Vehicle Loans, Commercial Home Loans,
etc.

p30
L & T Financial Services has subsidiaries which include L & T Finance Limited, L & T
Infrastructure Finance Company Limited and L & T Asset Management Company
Limited. It also provides Insurance related services through L & T General Insurance
Company Limited.

All India Financial Institutions

It is a group composed of Development Finance and Investment Institutions which

play pivotal role in the nancial markets. They act as an intermediary between
borrowers and nal lenders, providing safety and liquidity. This ensures earnings
on the investments and savings involved.

1. Export – Import Bank of India (Exim Bank)

Commencing operations in 1982, Exim Bank was established
by the Government of India under the Export – Import Bank of
India Act, 1981 as a provider of export credit, mirroring
global Export Credit Agencies. Today, Exim bank serves as a
growth engine for industries and SME's through a wide range
of products and services. Exim bank is both a catalyst and a
key player in the promotion of cross border trade and investment.

It offers a gamut of unique products and need based services that boost Indian
businesses across the globe. Exim bank operates from its headquarters in Mumbai
and 9 domestic and 9 overseas ofces.

2. National Bank of Agriculture and Rural Development

(NABARD)
NABARD is an apex development bank in India which came
into existence on 12 July 1982 by transferring the
agricultural credit functions of RBI and renance functions of
the then Agricultural Renance and Development
Corporation (ARDC). NABARD was set up with an initial
capital of Rs. 100 crore, but today it has a paid up capital at
Rs. 5,000 crore. NABARD build an empowered and nancially inclusive rural India
through specic goal oriented departments i.e. Financial , Developmental and
Supervision.

3. Small Industries Development Bank of India ( SIDBI)

Small Industries Development Bank of India was established on April 2, 1990
under an Act of Indian Parliament and is headquartered in Lucknow, Uttar
Pradesh. It acts as the Principal Financial Institution for the Promotion, Financing
and Development of the Micro, Small and Medium Enterprise sector and for Co-

p31
ordination of the functions of the institutions engaged in
similar activities.

The Micro, Small and Medium Enterprises contributes to

the growth of Indian economy with a network of around
5.1 crore units, employing 11.7 crore workforce and manufacturing 6000 products.

SIDBI contributes about 45% to manufacturing output and about 40% of exports. It
has made cumulative disbursements of about 4.50 lakh crore which has benetted
350 lakh persons till now.

4. National Housing Bank (NHB)

National Housing Bank was set up on July 9, 1988
under the National Housing Bank Act, 1987. It is the
apex nancial institution for housing. An wholly owned
subsidiary of Reserve Bank of India, it is headquarte-
red at New Delhi.

The objective to establish NHB was to operate it as a principal agency to promote

housing nance institutions at both local as well as regional levels. At the same time
its aim is to provide nancial and other support incidental to such institutions.

NHB registers, regulates and supervises Housing Finance Company (HFC's) keeps
surveillance through On-site and Off-site mechanisms and coordinates with other
regulations.
NHB had 84 professionals at different levels who are committed to pursuit of
excellence through innovation, doer work culture and contemporary work practices
and technology intervention.

p32
 Increase Your Knowledge Further !
Q.1 You have studied about the top nancial services companies of India.
Now nd out top 3 nancial services companies across the globe.

Q. 2 Learn about Bank of International Settlements and list three functions

of it.

Q. 3 Find out which all nancial services companies mentioned in this chapter
have their global reach.

Make Notes:

p33
Chapter 7
EMINENT BUSINESS
HOUSES OF INDIA

p34
The module takes you through the traditional, eminent and well established business
houses of India. Let us study their success stories.

WIPRO
Founded on : 29th December 1945
Founded by : Mohamed Hasham Premji
Headquarters : Bengaluru , Karnataka

Started initially as a manufacturer of vegetable and rened

oils, the company shifted its focus to new business opportunities in the IT and
computing industry,in 1970’s and 1980’s. Wipro was established as Wipro India
Products subsequently changing it to Wipro Products Ltd. and to Wipro limited in
1982 with the arrival of Wipro into IT domain. Wipro, since its establishment, has
diversied its product line with Wipro Group being the parent company and
having it subsidiaries as Western India Products Limited, Wipro Consumer Care
and Lighting, Wipro Infrastructure Engineering and Wipro GE Medical Systems.
Listed on Bombay Stock Exchange and National Stock Exchange of India, Wipro
has a workforce of 170000+ employees in 175 cities across 6 continents. The
global information technology company registered revenue of USD 7.7 billion in
2016.
Wipro has strategic alliances with globally recognised companies like Google,
Hewlett Packard Enterprise, CISCO, Adobe, Microsoft, IBM etc as well as
Technology Alliances with Intel, Amazon Web Services , Sonic Software, Dell Boomi
etc.

GMR Group
Founded in : 1978
Founded by : Grandhi Malikarjuna Rao
Headquarters : New Delhi

GMR Group was started with Agri based industries like Jute, Sugar and Breweries
which slowly diversied itself into the Infrastructure space. Today, the interest of the
company lies in Airports, Energy , Highways and Urban Infra. The group is a major
player in the infrastructure sector with world class projects in India and abroad.

GMR group has also forayed into sports by promoting Delhi Daredevils in IPL.
With Indira Gandhi International Airport, New Delhi and Rajiv Gandhi
International Airport, Hyderabad operated by the Group, it employs close to
12000 workforce generating USD 140 billion of revenue. The Group’s Global
Presence with infrastructure operating assets and projects in several countries
including Nepal, Turkey, South Africa, Indonesia , Singapore, Maldives and
Philippines.

p35
Adani Group
Founded in : 1988
Founded by : Gautam Adani
Headquarters : Ahemdabad, Gujarat

Adani Group was founded as a commodity trading business and later on it

diversied its businesses into resources, logistics, agribusiness and energy sectors.
Today, the Group is the largest port developer and operator in India. It is
considered to be one of the leading business houses with revenue of over USD 12
billion. The group’s subsidiaries include Adani Ports & SEZ Limited, Adani Power,
Adani Gas Limited.

Wadia Group
Founded in : 1736
Founded by : Lovji Nusserwanjee Wadia
Headquarters : Mumbai, Maharashtra

One of the oldest conglomerates of India, Wadia Group initially secured contracts
with the British East India Company to build ships and docks in Bombay.

Over the last 140 years, the Wadias have diversied into various elds of industry
and commerce in collaboration with world leaders.

The new companies under the wadia banner have become market leaders in their
respective elds under the vision and leadership of the Wadia Group Chairman
Mr. Nusli Wadia.

The diversication led to formulation of following companies

1. Bombay Dyeing
2. Bombay Realty
3. Britannia Industries
4. Go Airlines
5. Wadia Techno Engineering Services
6. Bombay Buramah

p36
Jaypee Group
Founded in : 1979
Founded by : Jaiprakash Gaur
Headquarters : Noida, Uttar Pradesh

Jaypee Group is a conglomerate which is involved in well diversied infrastructure

conglomerate with business interests in Engineering & Construction, Power, Cement,
Real Estate, Hospitality, Expressways, IT, Sports & Education.

Jaypee is India's rst largest cement producer and the largest private sector
hydropower company with 1,700 MW in operation. The Jaypee Group successfully
completed projects in 18 states of India and Bhutan. Today, Jaypee Group
operates through its various subsidiaries like Jaypee Infratech Limited (JIL), Bhilai
Jaypee Cement Limited, Himalayan Expressway Ltd., Yamuna Expressway Tolling
Limited, Jaypee Infrastructure Development Ltd. etc.

Jaypee is known for its infrastructure like Buddh International Circuit and Yamuna
Expressway.

Aditya Birla Group

Founded in : 1857
Founded by : Seth Shiv Narayan Birla/Ghanshyamdas Birla
Headquarters : Mumbai, Maharashtra

The multinational conglomerate has interests in sectors such as vicose staple bre,
metals, cement, viscose lament yarn, branded apparel, carbonblack, chemicals,
fertilisers, insulators, nancial services, telecom, BPO and IT services.

It employs over 1,20,000 employees with operations spanning 36 countries. Today

the group is in league of Fortune 500 with revenue of USD 41 billion. It is the third
largest Indian private sector conglomerate behind TATA Group and RIL.

UltraTech Cement , Grasim Industries, Idea Cellular and Hindalco are few of its
products which have established themselves. The Philanthropic side of the group is
run by Mrs. Rajashree Birla which runs 45 schools and 18 hospitals.

Aditya Birla Group is the 4th largest producer of insulators and 5th largest
producer of acrylic bre globally. It is the largest Indian MNC with manufacturing
operations in the USA, wherein 95% of the workforce comprises of Americans.

p37
Bajaj Group
Founded in : 1926
Founded by : Jamnalal Bajaj
Headquarters : Mumbai, Maharashtra

The Bajaj Group is one of the most respected and renowned business houses of
India. The Group comprises of 36 companies which are involved in various
industries such as automobiles, home appliances, lighting, iron and steel, insurance ,
travel and nance.

The group has revenue of close to USD 7 billion with a team of 45000 people.
Some of the notable companies under the group are Bajaj Auto Ltd, Bajaj Finance
Ltd., Bajaj Finserv Ltd, Bajaj Electricals Ltd, Bajaj Allianz General Insurance
Company Ltd. and Bajaj Allianz Life Insurance Co Ltd.

Bajaj Group is also involved in variety of welfare activities which are carried out
through trusts and foundations established by the group. The various trusts and
foundations spend upto USD 1.8 million every year for these activities in education,
health, women empowerment, self reliance, rural development and environment.

TATA Group
Founded in : 1868
Founded by : Jamsetji Tata
Headquarters : Mumbai, Maharashtra

The Group is India’s largest conglomerate employing 660,000 people comprises

of 29 publicly listed TATA enterprises with a combined market capitalisation of
about USD 130.13 billion. The TATA Group’s global footprint spans in more than
100 countries in 6 continents. The Group comprises of over 100 independent
operating companies such as TATA Steel, TATA Motors, TATA Consultancy Service,
Titan, TATA Chemicals etc.

The independent operating companies have achieved global leadership in their

businesses be the No. 1 international wholesale voice provider TATA
Communications or TATA Motors which is considered to be among top 10
commercial vehicle manufacturer in the world. Similarly, TATA Steel is among the
top 15 steelmakers and TCS is the 2nd largest IT service company in the world.

p38
RELIANCE INDUSTRIES LIMITED
Founded in : 1966
Founded by : Dhirubhai H. Ambani
Headquarters : Mumbai, Maharashtra

Reliance Industries Limited (RIL) is an Indian conglomerate holding company with

businesses across India engaged in energy, petrochemicals, textiles, natural
resources, retail and telecommunications. Reliance is the most protable
company in India, the second-largest publicly traded company in India by market
capitalization and the second largest company in India as measured by revenue
after the government-controlled Indian Oil Corporation.

De- Merger of RIL

In October 2005, the split of Reliance Group was formalized. Mukesh Ambani
acquired Reliance Industries and IPCL, while Anil Ambani received telecom, power,
entertainment and nancial services business of the group hence forming The
Reliance - Anil Dhirubhai Ambani Group includes Reliance Communications,
Reliance Infrastructure, Reliance Capital, Reliance Natural Resources and Reliance
Power. The division of Reliance group business between the two brothers also
resulted in de-merger of 4 businesses from RIL. These businesses immediately
became part of Anil Dhirubhai Ambani Group

RELIANCE ADA GROUP

The company, which was formed after Dhirubhai Ambani’s
business was divided up, is headed Anil Ambani. It has a
market capitalization of US$13 billion and net assets worth
US$27 billion. The Reliance Group operates in over 25,000 cities and 400,000
villages.

Across different companies, the group has a customer base of over 100 million, the
largest in India, and a shareholder base of over 12 million, among the largest in the
world. Through its products and services, the Reliance –ADA Group touches the life
of one in every 5 Indians every singe day. Through its products and services, the
Reliance - ADA Group touches the life of 1 in 10 Indians every single day.

It has a business presence that extends to over 20,000 towns and 4.5 lakhs villages
in India, and 5 continents across the world.

p39
 Increase Your Knowledge Further !
You have learnt about traditional and eminent business houses of India.
Now search for the leaders who emerged by themselves.

Q.1 OLA

Q. 2 FlipKart

Q. 3 Book My Show

Make Notes:

p40
 Chapter 8
DEMONETIZATION AND GST

GST
2000
1000
500

500

p41
Demonetization and GST have captured the nation's attention in the nancial year
2016-17. Let us study about these topics in detail.

DEMONETISATION
Demonetization is considered to be a move of depriving a currency unit from its
status of being a legal tender. Example of such demonetisation include when
Zimbabwean government demonetized its dollar to combat the c ountry's
hyperination and the recent demonetisation by Indian government of it 500 and
1000 rupee note.

INDIA's Demonetization
On 8th November 2016, the Indian Government led by Mr. Narendra Modi took a
step to demonetizethe 500 and1000 rupee notes. The two biggest denominations
in the currency system which accounts 84% of the country are circulating cash. The
move so taken by the government was to curtail the shadow economy and crack
down the use to illicit andcounterfeit cash.

Through this move up to 98% ofthe demonetized bank notes were deposited back
into banks totalling the depositaccount to 14.97 trillion out of the 15.4 trillion cash
demonetized. Post the announcement of demonetization, the Indian government
also announced the issuance of new 500 and 2000 banknotes in exchange for the
old notes.

GST
Goods and Services Tax (GST) is an indirect tax for the whole nation, which will
make India one unied common market.

The GST is governed by GST Council and its Chairman is Union Finance Minister of
India i.e. Nirmala sitharaman. GST has beenapplicable from July 1st, 2017.

Four types of taxes have been combined together to form GST:

· Entertainment Tax
· Entry Tax
· Advertisement taxes
· Taxes applicable on lotteries

GST will be levied on all transactions such as sale, transfer, purchase, barter, lease,
or import of goods and/or services. India is adopting a dual GST model, meaning
that taxation is administered by both the Unionand State Governments.
It is asingle tax on the supply of goods and services, right from the manufacturer to
the consumer. The nal consumer will thus bear only the GST charged by the last
dealer in the supply chain, with set off benets at previous stages.

p42
Benets of GST:
1. For Business and Industry
• Easy Compliance
• Uniformity of tax rates and structures
• Removal of Cascading
• Improved Competitiveness
• Gain to manufacturers and exporters

2. For Central and State Government

• Simple and easy to administer
• Better controls on leakage
• Higher revenue efciency

3. For the consumer

• Single and transparent tax proportionate to the value of goods and service
• Relief in over tax burden

p43
 Increase Your Knowledge Further !
Q.1 We have discussed about India's demonetization in 2016. Find out the
other demonetization which occurred in India post independence.

Q. 2 Find and write about Demonetization in Zimbabwe.

Q. 3 Find 10 more countries who have implemented GST.

Make Notes:

p44
 Chapter 9
UNION BUDGET

p45
 INTRODUCTION
The Minister of Finance presented the Union Budget 2021-22. This was the rst
ever digital Union Budget.

• It is based on six pillars - health and well-being, physical and nancial

capital and infrastructure, inclusive development for aspirational India,
reinvigorating human capital, innovation and R&D, and 'Minimum
Government, Maximum Governance'.

• This section deals with the proposals for the Health and Wellbeing Sector.

Budget and Constitutional Provisions:

According to Article 112 of the Indian Constitution, the Union Budget of a year
is referred to as the Annual Financial Statement (AFS).

It is a statement of the estimated receipts and expenditure of the Government

in a Financial Year (which begins on 1st April of the current year and ends on
31st March of the following year).

Overall, the Budget contains:

1. Estimates of revenue and capital receipts,
2. Ways and means to raise the revenue,
3. Estimates of expenditure,
4. Details of the actual receipts and expenditure of the closing nancial
year and the reasons for any decit or surplus in that year, and
5. The economic and nancial policy of the coming year, i.e., taxation
proposals, prospects of revenue, spending programme and introduction of
new schemes/projects.
In Parliament, the Budget goes through six stages:
1. Presentation of Budget.
2. General discussion.
3. Scrutiny by Departmental Committees.
4. Voting on Demands for Grants.
5. Passing an Appropriation Bill.
6. Passing of Finance Bill.

• The Budget Division of the Department of Economic Affairs in the Ministry

of Finance is the nodal body responsible for preparing the Budget.

• The rst Budget of Independent India was presented in 1947.

p46
 ANALYSIS OF UNION BUDGET 2021-22
CATEGORY HIGHLIGHTS
The limit for tax audit is set to be increased for persons
who resort to digital transactions for as much as 95% of
the total transactions. For senior citizens (aged 75 years
and above), ling of Income Tax Returns (ITR) will be
exempted, provided the only form of income applicable
to them is pension and income from interest. In these cases,
the paying back will be responsible for deducting the
necessary taxes. The dividend payment to REIT or InvIT
Taxes will be exempted from TDS. The pre-ling of returns will
cover the likes of dividend income, capital gains from
listed securities, and so on. An additional discount of
Rs.1.5 lakh will be available for all loans availed for the
purchase of houses under the affordable housing project
up to 31 March 2022. A proposal has been placed for
extension of tax holiday for start-ups by another year.

Relief to be offered to metal recyclers. Rationalisation of

duties on the input of raw materials required for articial
Indirect textiles. With the view to promote domestic production,
Taxes the duty of solar lanterns and investors will be increased.
A small number of items will now be charged with
Agriculture Infrastructure and Development Cess.

Government Privatisation of Public Sector Enterprises. The borrowing

Reforms limits of state governments are to be increased.

MSMEs which have been affected by the sudden rise in

prices of iron and steel to be supported. Businesses will
MSMEs receive collateral free loans. Fund of Funds will be set up
and for the MSMEs. The denition of MSMEs has been
Industries changed. MSMEs will be provided with subordinate
debts. The PM GaribKalyanYojana is to be rolled out
under the AtmaNirbhar Bharat Abhiyan.

p47
CATEGORY HIGHLIGHTS
One Nation, One Card to be rolled out for migrant
workers under the AtmaNirbhar Bharat Abhiyan in 32
Migrant states and union territories. Migrant workers to receive
Workers free food grain supply. Social security benets to be
extended to the platform and gig workers.

Discoms to receive liquidity support. Cross-subsidy is to

Energy be reduced. Regulatory assets to be eliminated.
Commercial coal mining.

Elimination of outdated exemptions through the

Custom rationalisation of customs duty structure. Rationalisation
Duty of customs duty on precious metals like gold and silver.

An amount of about Rs.1.97 lakh crore has been

committed for the PLI which has been launched to create
manufacturing global champions in the upcoming 5 years
across 13 sectors. World class infrastructure to be
Industry created for global champions in the textile sector
industry through the MITRA scheme for the creation of 7
textile parks over 3 years. The NIP Project pipeline has
been expanded to 7,400 projects.

The Supplementary Nutrition Programme and the

PoshanAbhiyan are set to be merged together and to be
launched as Mission Poshan 2.0. Support to be
sanctioned for the health and wellness centres. An outlay
of Rs.64,180 crore to be spread out over the upcoming 6
Healthcare years. Rs.35,000 crore sanctioned for COVID-19 vaccine
in 2021-22. NCDC will be strengthened and the
integrated health information portal will be expanded.
Critical care hospital blocks to be established and
integrated public health labs to be set up.

p48
 CATEGORY HIGHLIGHTS
Development of sufcient rail infrastructure by 2030 to
cater to the projected trafc requirements up to 2050
under the National Rail Plan. Broad gauge routes are to
be covered with 100% electrication by 2023.
Infrastructure Hydrogen energy mission is being prepared to be
launched. Result linked power distribution sector scheme
is to be launched with a set outlay amount of Rs.3,05,984
crore over 5 years.

Farmers to receive a concessional credit boost. Farmers

to be provided with emergency working capital. Agri
Infrastructure Fund to be sanctioned. Development of
animal husbandry infrastructure. Marketing reforms in
regard to agriculture Essential Commodities Act is set to
Agriculture be amended. The coverage of the SWAMITVA Scheme
will be extended to all states and union territories. An
additional 1,000 mandis will be integrated with e-NAM.
Operation Green scheme will be expanded to include as
many as 22 perishable products.

To tackle the problem of air pollution, Rs.2, 217 crore will

be allocated for 42 urban centres. Public bus transport to
be augmented with an innovative PPP model. Voluntary
Vehicle Scrapping policy to be introduced. JalJeevan
Urban Mission (Urban) to be rolled out to ensure universal water
Development supply in all ULBs. Outlay of more than Rs.1.41 lakh crore
over the upcoming 5 years for Urban Swachh Bharat
Mission. Tier 2 cities to get MetroLite and MetroNeo while
tier 1 cities get peripherals.

100 new Sainik schools to be set up. 750 new Eklavya

schools to be set up in tribal areas. With the aim to ensure
Education the welfare of SCs, revamped post matric scholarship
scheme to be introduced.

p49